Officials expect Gateway construction to resume next week

Officials expect that construction work for Gateway, the massive cross-Hudson rail project temporarily halted by the Trump administration last month, will resume next week, they announced Wednesday morning. 

The White House froze funding for Gateway last year, sparking lawsuits from New Jersey and New York as well as the Gateway Development Commission, the bistate agency leading the construction. A federal judge ruled that, while those lawsuits slither through the courts, funding must resume, and the Trump administration has released about $205 million over the last several days.

Gateway officials were forced to pause construction earlier this month after the agency finally ran out of leftover sums; the pause led to the immediate layoff of about 1,000 workers, and officials say a long-term freeze could cost more than 10,000 jobs and hundreds of millions of dollars.

“We are working with our contractors to deploy these funds to resume work as soon as possible,” the GDC said. “Letters will be sent to contractors today, and construction activities are expected to resume next week. We continue to pursue all avenues to secure access to the full amount of federal funding for the Hudson Tunnel Project, including our lawsuit.”

An appeals court last week opted not to hear the case until later this month, allowing a temporary restraining order requiring the release of funding to go into effect. In a filing on Tuesday afternoon, the Trump administration’s lawyers said they expected all funding to reach the GDC by Thursday.

The Gateway funding brouhaha has energized Democrats angered with Trump’s decision to cut funding, and put New Jersey Republicans, many of whom support the bipartisan rail project, into a difficult spot.

The court cases are expected to last months.

“We took him to court because I care deeply about jobs and the economy, even if the federal government doesn’t seem to. So, I took him to court: we won. He fought it again: we won. We have seen the funds released, and he continues to remain in court — but we’re just seeing again and again that what he’s doing is illegal,” Gov. Mikie Sherrill told reporters Wednesday. “And the worst part about it is now, he’s probably cost the project, which was on time and on budget, millions of dollars by halting all this work.”

The Trump administration has put forward a number of different reasons why it’s seeking to halt the project, including most recently a social media post from the president that warned it would “cost many BILLIONS OF DOLLARS more than projected or anticipated.”

Rep. Tom Kean Jr. (R-Westfield), a pro-Gateway Republican, said in a new statement that he understood Trump’s worries but believes that the $16 billion project, which has been in the works for decades, remains worthwhile.

“I respect President Trump’s concern about cost overruns and share the view that strong oversight and accountability are essential on any project of this scale,” Kean said. “Where I differ is that I believe Gateway is too important to delay, and that we can advance the project while still protecting taxpayers. My focus is on delivering a project that works for the Seventh District, keeps commerce moving, and is built with transparency and fiscal discipline.”

This article was updated with comment from Sherrill, and again at 4:32 p.m. with comment from Kean.